Globalfoundries awarded 45M to KGB in Aug21. Now another 49M to KGB. More to come

Key takeaways(cimb)
● The group attributed the lower qoq sales from RF division in 4QFY6/21 mainly to lower
workforce availabilities, which were capped at 60% during the full movement control
order (FMCO) implementation in Jun 21. However we expect a stronger qoq RF
division performance in 1QFY6/22F, in view of higher workforce availabilities, given
that Penang has moved into Phase 2 of the national recovery plan on 7 Jul 2021,
which allows the group to operate with a higher 80% workforce capacity. In addition,
management highlighted that over 90% of its workforce in Malaysia has completed two
doses of Covid-19 vaccine as at early-Aug 2021.
● We expect a higher contribution from value-added processes, such as electromagnetic
(EMI) shield coating for the RF division, in FY22F, following positive feedback from
Inari’s customer. The group expects a higher percentage of RF chips to undergo EMI
shield coating process in FY22F. Inari is allocating RM100m capex in FY22F, mainly
for three new system-in-package lines, eight EMI shield systems and wafer processing
equipment.
● The group is upbeat about the new integrated system for its module division at P55, a
new 50k sq ft 5-storey building extension, located next to P13 in Bayan Lepas. The
group is preparing for the pilot line to qualify for assembly and testing of automotive
power module for a new US customer. We estimate this could be a new growth engine
for Inari — contributing 15% of the group’s revenue within the next three years.

KGB warrant has 5 years duration vs 3 years
KGB is building their recurring incomes which is why funds are into it

“Semiconductor players will always be our major clients. What we love about semiconductors is that the industry has to keep expanding as technology evolves. It is not the typical manufacturing industry where you build a factory and it could last for 20 years. For semiconductor firms, they have to keep investing in new wafer fabs, which means more projects for us. It is like a forever sunrise industry, because we are always chasing them,” says Ong.

Different production line will require different hook up to support

Its about technology changes or production line expansion both required UHP...whenever there is a change in product due to different process new UHP will come in

M&A + organic....sizeable...double top and bottom line

Dawchok...u play again after 7min

I watched live version

In uob research report. It stated that their management is targeting double up top and bottom line by 2022. However, kc lau said during bursa conference that they want to double their top line within 3 yrs...

https://focusmalaysia.my/leveraging-repeat-customers-the-awesome-kelington-groups-experience/

The Board of Directors of the Company is pleased to announce that Kelington Technologies Sdn Bhd (“KTSB”), a wholly-owned subsidiary of Kelington had on 14 July 2021 received an award of contract from Stolthaven (Westport) Sdn. Bhd. to undertake the engineering, procurement, and construction works of oil products storage tanks for Tank Pit 8 Expansion Project at Port Klang (“the Contract”).



The Contract value is worth approximately RM50 million subject to the final variation and engineering options.



The Contract is for a period of 15 months commencing from 14 July 2021 and expected to be completed by October 2022.

high oil price doesn't really matter to armada but sustainable oil demand and oil price

Warrant should be around 30 to 35c during 1st listing day

EPF emerged as substantial shareholder

Upstream player cannot bull for long term...only intregrated player can sustain high earnings

Hoe said Sarawak Oil Palms is guiding for RM220 million in capex for FY21, which comprises new refining capacity of 800 tonnes/day (to be completed in 3Q21) and extra 300 tonnes/day for its biodiesel plant expansion (completed by end-2020), on top of the usual upstream maintenance — she revised FY20-22 earnings forecasts by 4-13%.
7 Jan 2021 RHB...

https://www.theedgemarkets.com/article/india-removes-restriction-import-refined-palm-oil

8. Low cash balance not a big deal. With pre-existing debt facilities yet to be drawn down from, as well as numerous debt offers from banks, the group believes that it will not run into significant issues with its current cash holdings.

unbilled sales 266m as at 31/3/2021 compared to 245 as at 31/12/2020

Ruili Integrated Circuit Co Ltd's

sign of competency

not just SMIC in china, they secured 30M+ project from china largest memory chip company

https://farmpolicynews.illinois.edu/2021/06/biden-administration-reportedly-considering-rfs-relief-for-oil-refiners/

pls share ya, i failed to registered eagm in time.

https://www.klsescreener.com/v2/news/view/840075

New growth engine
Going forward, the industrial and specialty gases business is expected to be one of the main growth drivers for KGB.

“Our exposure to this market segment will probably be about RM20 million this year, which is very small if you look at the Malaysian market size of RM1.4 billion to RM1.5 billion, but that also means huge room for us to grow,” Gan says optimistically.

https://www.linde-gas.com/en/images/Gasworld%20-%20Creating%20a%20Semiconductor%20FEB18_tcm17-477345.pdf

Sop stratergy to expand property segment is good provided they continue to focus on low and affordable landed lroperty

Biofuel is a future. Like it or not when other edible oil is shortage due to high feed stock being cinsumed for biofuel...eventually peoples will hunt for palm oil

Whats your view?

KGB always provide aging list in their qr. Most of the debtors have yet due. The trend is in line with last few quarters/ years

value investing

gearing will go below 1.75x by q3

Fundamentals almost fully priced-in
1QFY21 core net profit made up 35% of our/consensus full-year forecasts;
we consider this in line as several revenue/cost items may not recur evenly.
We raise our SOP-based TP to 48 sen as we include the liquidation values of
its OMS assets, but downgrade to Hold on strong share price performance.
Upside risks include the potential for BAB to win its bid for Petronas’s FPSO
Limbayong contract, which may be awarded in 3Q21F.
1Q21 earnings continue to do well
BAB delivered a 1Q21 core net profit of RM150m, the second-highest in its history,
behind only 4Q20’s RM174m, and 69% better yoy. The good performance was due to
higher FPSO Kraken uptime, reduced OMS losses after 11 OSVs were sold in 1Q21,
better associate profits after the FPSO Sterling-1’s contract was extended for a further
10+5 years from 4Q20, and RM33m in fees charged to the 30%-owned FPSO 98/2 JV for
project management services in 1Q21. Core net profit fell in 1Q21 vs. 4Q20 as the
Kraken and TGT-1 FPSOs undertook planned shutdowns, while Sterling-1’s earnings
were impacted by the expensing of certain life-extension costs.
Updates on one ongoing, one upcoming, and one potential project
BAB has a 30% interest in the FPSO 98/2 (with its partner, Sharpoorji Pallonji (SP) with
70% stake) that was originally to be leased to ONGC from 1Q22F, for a period of 9+7
years. Due to Covid-19-related delays that affected the work schedule at Singapore’s
Sembcorp Marine, ONGC has extended the timeline and the FPSO will be delivered to
ONGC sometime during 2022F, according to BAB. We have included the contribution of
FPSO 98/2 into our TP, and earnings forecasts from 3Q22F. Separately, on 18 May,
BAB’s 49:51 JV with SP, SPACEVPL, entered into a licensing agreement to set-up an
FSRU at the Port of Mumbai for a period of 30 years, and SPACEVPL will have 270+50
days to secure financing, obtain applicable permits to start construction of the pipeline
and jetty, and begin the process of converting an existing LNG ship into an FSRU
(estimated capex of US$100m-200m). SPACEVPL is marketing the terminal and
regasification capacity of 3m-5m tonnes of LNG p.a. to potential industrial customers on a
take-or-pay basis. According to guidelines from India’s Ministry of Ports, Shipping and
Waterways, the port licence fees for the entire 30-year licence period is to be paid
upfront. We have not factored-in SPACEVPL into our earnings forecasts or TP due to
lack of details, but the FSRU should begin operations from 2023-24F, in our estimate.
Finally, BAB, SP and MTC Group are JV partners in the bid for Petronas’s FPSO
Limbayong contract, to be located offshore Sabah, with the 12+3+3+2 year charter likely
to be awarded to the winning bidder in 3Q21F. Competing bidders include Yinson, MISC
and Sabah International Petroleum, according to industry newspaper Upstream. We have
not included Limbayong into our estimates or TP for BAB; if BAB’s consortium wins the
project, support from BAB’s major shareholder Usaha Tegas may be required to fund the
equity portion of BAB’s capex commitment, in the same way that Usaha Tegas extended
assistance for BAB’s equity commitments for the FPSO 98/2 project.

CIMB

Bumi Armada (BAB MK, BUY, TP: MYR0.51)*
_A Strong Start; Keep BUY_
Results Review
Keep BUY, new SOP-based MYR0.51 TP from MYR0.47, 13% upside. Bumi Armada’s 1Q21 earnings beat expectations, led by better Armada Olombendo earnings and other operating income. We expect cash flow to be resilient, backed by stable FPSO operations and continuous asset monetisation. Its risk-reward profile remains attractive, as its current 6.1x FY21F P/E (-0.5SD from the 5-year mean) reflects an elevated 2.08x net gearing as at 1Q21.

RHB

Worth to cover given their unique biz model and no 2 industrial gas vendor in malaysia

a small-cap company can attract coverage from 4 IBs, namely affin, rhb, kenanga and malacca sec

We view that Armada is still in its early stages of commercial discussions on the FSRU JV project with the Port of Mumbai (MbPT) and the terms are yet to be ironed out. Nevertheless, we are positive on the prospects of the FSRU project with MbPT as we opine that there will be a huge market for gas in India in the future as most of India’s power is currently generated by coal.

BONUS WARRANT APPROVED

From AR:- currently, we are in discussions for two new property development joint-ventures, with a combined GDV of RM400
million. These new projects are targeted to be finalised in the fourth-quarter of 2021 and first-quarter of 2022 respectively.

Q1 not impressive but best Q1 ever

Nope. U zoom in the figure. Its the higest last time 76only

this is the highest quarter ever, you have included minority interests for q32011

2nd highest? I thought the highest

79M

to-date, they have raised 130M from esos, they return to shareholders since everyone not happy with esos that led to eps dilution.

https://www.spglobal.com/platts/en/market-insights/latest-news/agriculture/051321-chinas-record-soybean-demand-forecast-to-support-prices-till-2022-sources

Sabah expansion
-Gabungan AQRS is a potential beneficiary of the revival of the Pan Borneo
Highway (PBH) Sabah project as it has submitted tenders previously for 4
packages together with its joint-venture (JV) partner Suria Capital
-High unbilled property sales of RM244.5m and remaining construction
order book of RM1.4bn should support strong earnings growth in 2021-23E
-We lift core EPS by 5% in 2021-22E to reflect higher progress billings and
better profit margin for ongoing projects. We reiterate our BUY call with a
higher RM0.81 target price, based on 20% discount to RNAV
Good prospects to secure PBH Sabah packages

AQRS-Suria Capital JV submitted tenders for PBH Sabah packages in 2017. But the
roll-out of new packages for PBH Sabah was delayed due to the previous changes
in government. We expect the implementation of the project to accelerate with the
appointment of HSS Engineers as the Project Management Consultant (PMC) for
PBH Sabah Phase 1 on 22 April 2021. We gather that potential new contract wins is
RM0.5-1.0bn from this project if AQRS secures several packages for the PBH Sabah
project. In addition, AQRS is targeting new contract wins of RM400m from other
projects to lift its current order book of RM1.4bn.

From Affin Hwang report

MIB 2700 222
BIMB 3000 320